C3.ai Inc. shares plunged more than 20% following a sharp miss on fiscal 2026 third-quarter expectations. The artificial intelligence software maker reported an adjusted loss per share of 40 cents, widening from a 12-cent loss a year ago. Revenue for the quarter ending January 31st fell 46.1% year-over-year to $53.3 million, significantly below analyst expectations of $75.91 million.
Subscription revenue declined 43.8% to $48.16 million, while professional services revenue dropped 61.1% to $5.1 million. Despite the financial headwinds, the company highlighted business wins including agreements with the U.S. Department of Agriculture, the U.S. Department of Energy, and NATO.
The federal, defense, and aerospace segment showed strength, with bookings increasing 134% year-over-year and accounting for 55% of total bookings. Notable projects include a U.S. Department of Agriculture initiative to modernize operations with an enterprise-scale AI solution.
For its fiscal fourth quarter, C3.ai anticipates revenue between $48 million and $52 million, falling considerably short of the $77.7 million projected by analysts. The company forecasts full-year revenue of $246.7 million to $250.7 million.